Bridging loans lending increased in 2015

bridging-finance-demandBridging loans lending turns out to be 40.9% higher in the second half of the year according to MT Finance Bridging Trends data. In H1, the bridging lending totaled £181.6m and in H2 it reached £252.9m. There is some positive expectation that the lending would still rise in 2016. Mortgage delay was the most popular reason to take out a bridge in 2015 wherein, refurbishment being the second reason. The demand for bridging increases with the increase in competitive rates in the market, the average bridging interest rate fell to an average of 0.87% in the fourth quarter, down from 0.95% in the first quarter.

 

Joshua Elash, director of bridging finance lender MTF, says: “The year 2015 showed strong demand for bridging loans. A larger volume of completions in the second half possibly reflects a bounce back from an earlier slowdown in the build up to the general election and the quiet summer months. Interest rates were under consistent downward pressure throughout the year as the bridging sector continued to be highly competitive.”

“The average term of a bridging loan suggests that bridging finance has become more affordable, making it more financially possible to use this type of funding over a longer period of time.”

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